Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Buzz and Banter


A Minyan writes, "Regarding your post on Minyanville, I would point out that this injection is only a net addition of $1.25b. The remaining amounts are rollovers of $5b and $10b in overnight and 14day repos, respectively.

Our work shows, that in the past, sustained increases in the size of the long duration repos (previously 28 day, now 14 day) and large net increases of $3.5b/day for 3 or more days are required to alter market direction."

This is correct. What is important is the cumulative amount added through the repo market. The amount the Fed seems to be adding is enough to keep the markets liquid and mitigate volatility.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos